PROMOTING GREEN FINANCE FOR SUSTAINABLE DEVELOPMENT IN BANGLADESH

Abstract

Although green finance is still a relatively new concept in Bangladesh, it has attracted much interest in the global financial sector. Policymakers and scholars have recently concentrated on green finance in response to growing worldwide concern about environmental protection, climate change, and sustainable development. There is no alternative way to protect the world except sustainable development. Finance is the engine of the development of infrastructure projects, including energy projects. Sustainable finance is needed for sustainable development and the emerging concept of "green finance" is an integral part of it. By yielding environmental benefits, green financing is critical for ensuring equitable, resilient, and greener economic growth. Bangladesh is gradually strengthening its funding through green financing in order to reduce the consequences of climate change and protect the environment by private and public sector involvement. Additionally, the study illustrates the extent to which green financing is being adopted by banks and non-bank financial institutions in the country between 2017 and 2021.Besides, the current study focuses on the various green financing products/initiatives undertaken by public and private sector organizations, banks, and non-banking financial institutions (NBFIs) in Bangladesh. It also examines the current state of green finance in Bangladesh, as well as the major obstacles that it faces, and makes recommendations for how to address those challenges. The study's findings indicate that the banking sector, in collaboration with NBFIs, is focusing more on green finance by offering different green products. The paper highlights significant issues in the area of green finance in Bangladesh and also makes recommendations for overcoming those obstacles. The study is descriptive in nature and based on secondary data gathered from various Banks and Non-Banking Financial Institutions' reports released by the Central Bank of Bangladesh, as well as other publicly available reports from public and private sector financial institutions and banks in Bangladesh. Additionally, quarterly reports on green banking in Bangladesh were evaluated, as were the websites of commercial banks and non-bank financial institutions, as well as various organizations such as the World Bank and UNEP, as well as published articles in various journals and prominent newspapers. The objective of this article is to raise awareness of private investors' role in sustainability.

Full text

III. Uluslararası Akademik
Çalışmalar Kongresi 2022
DEĞİŞİM & UYUM
III. International Academician
Studies Congress 2022
CHANGE & ADAPTATION
EDİTÖRLER / EDITORS
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III. INTERNATIONAL ACADEMICIAN
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III. ULUSLARARASI AKADEMİK ÇALIŞMALAR KONGRESİ 2022 DEĞİŞİM & UYUM
III. INTERNATIONAL ACADEMICIAN STUDIES CONGRESS 2022
CHANGE & ADAPTATION
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İÇİNDEKİLER / CONTENTS
NFT PAZARININ YÜKSELİŞİ: SOSYAL MEDYA ETKİLEŞİMİNİN ve BENZERSİZ OLMA İHTİYACI-
NIN NFT SATIN ALMA NİYETİNE ETKİSİ ..............................................................................................3
THE RISE OF THE NFT MARKET: THE EFFECT OF SOCIAL MEDIA INTERACTION AND THE NEED
FOR UNIQUENESS ON NFT PURCHASE INTENTION
İbrahim Halil EFENDIOĞLU
HİZMET İŞLETMELERİNDE HATIRLI PAZARLAMANIN ETKİSİ; ÖĞRETMENLER ÜZERİNE BİR
ARAŞTIRMA .................................................................................................................................................... 13
THE EFFECT OF INFLUENCER MARKETING ON SERVICE ENTERPRISES; A RESEARCH ON TEA-
CHERS
Resul ÇELİK & Sevilay USLU DİVANOĞLU
ERGENLERDE AĞRI KORKUSU ............................................................................................................................33
Songül GÜNGÖR & Ayla YAVA
ANAYASAL İKTİSAT – ANALİTİK BİR DERLEME ......................................................................................... 45
Mahir TAŞ & Sidar Atalay ŞİMŞEK
BORSA BİLİNİRLİĞİ: ÜNİVERSİTE ÖĞRENCİLERİ ÜZERİNE BİR ARAŞTIRMA .............................. 59
STOCK MARKET AWARENESS: A STUDY ON UNIVERSITY STUDENTS
Ensar AĞIRMAN & Osman Can BARAKALI
DEPOLAMA VE ENVANTER YÖNETİMİNDE ENDÜSTRİ 4.0 ................................................................... 77
INDUSTRY 4.0 IN STORAGE AND INVENTORY MANAGEMENT
Dr. Öğr. Üyesi Fatih Çağatay Baz & Öğr. Gör. Mesut Selamoğlu
A STUDY ON THE ADOPTION OF E-PAYMENT SYSTEMS IN INDIA: A LITERATURE REVIEW
..................87
Nilamben Parmar&Suresh Machhar
KÜRESEL ŞİRKETLERDE ÖRGÜTSEL İTİBARIN GÖRSEL BOYUTU ...................................................105
The VISUAL DIMENSION of ORGANIZATIONAL REPUTATION in GLOBAL COMPANIES
Oğuzhan Aytar
THE STRUCTURE AND CHARACTERISTICS OF FAMILY BUSİNESSES: EXAMPLES FROM FAMILY
COMPANIES THAT HAVE COMPLETED THE INSTITUTIONALIZATION PROCESS ..................113
VİLDAN BAYRAM & EMEL ERBAŞLI
KIRSAL ALANDAKİ KADINLARIN ÇEVRE BİLİNCİNİN OLUŞMASINDA ÇEVRE EĞİTİMİNİN
ROLÜ (TOKAT MERKEZ İLÇE ÖRNEĞİ) .............................................................................................129
THE ROLE OF ENVIRONMENTAL EDUCATION IN FORMATION OF ENVIRONMENTAL AWARE-
NESS OF RURAL WOMEN (TOKAT CENTRAL DISTRICT EXAMPLE)
Rüveyda YÜZBAŞIOĞLU
ÖRGÜTSEL BİYOMİMİKRİ: KARINCA KOLONİLERİNİNİN İŞBİRLİĞİNDEN ORGANİZASYONLAR
NASIL FAYDALANABİLİR? ......................................................................................................................137
ORGANIZATIONAL BIOMIMICRY: HOW ORGANIZATIONS CAN BENEFIT FRIM ANT COLONIES?
Dr. Ayşe Meriç Yazıcı
A REVIEW OF INTERNET OF THINGS (IOT) FOR THE DESIGN OF SMART SYRINGE PUMP IN
BIOMEDICAL APPLICATION ..................................................................................................................147
Mahrus Bawafie Mhd Harip & Che Zawiyah Che Hasan & Mohamad Adlee Nordin
THE INFLUENCE OF READING ON STUDENTS’ SPEAKING ABILITIES: PRONUNCIATION,
GRAMMAR, AND VOCABULARY ..........................................................................................................161
Darshnı Gunasekaran & Gunadevı K. Jeevı Subramanıam

HAYVANSAL BESİNLERDEKİ HORMON VE İLAÇ KALINTILARININ İNSAN SAĞLIĞINA OLUM-
SUZ ETKİLERİ ..........................................................................................................................................171
NEGATIVE EFFETCS OF HORMONES AND DRUG RESIDUES IN FOODS OF ANIMAL ORIGIN ON
HUMAN HEALTH
Ali Bilgili
ORAL COMMUNICATION SKILLS FOR ENGINEERS: UNDERSTANDING INDUSTRY’S EXPEC-
TATIONS .....................................................................................................................................................179
Gunadevı K. Jeevı Subramanıam & Hema Muniandy Portorajo & Fathımah Pathma
Abdullah
ÇOCUK SAĞLIĞI VE HASTALIKLARI HEMŞİRELİĞİ DERSİNİ ALAN ÖĞRENCİLERİN KLİNİK
RAHATLIK VE ENDİŞE DÜZEYLERİNİN BELİRLENMESİ ......................................................189
DETERMINATION OF CLINICAL COMFORT AND WORRY STUDENTS TAKING CHILD HEALTH
AND DISEASE NURSING COURSE
Edanur Tar & Bahar Aksoy
İNFODEMİ İLE MÜCADELEDE HALK SAĞLIĞI HEMŞİRESİ .............................................................199
PUBLIC HEALTH NURSE IN FIGHTING INFODEMIC
Fatma Zehra Genç & Naile Bilgili
BABANIN YASASINDAN AZAT EDİLMİŞ BİR ANLATI OLARAK BASİT BİR ES* ........................205
BASİT BİR ES* AS A NARRATIVE LIBERED FROM THE FATHER’S LAW
Birsel Sağıroğlu
OSMANLI TAŞRA BELEDİYE BÜTÇELERİ’NE DAİR BİR ÖRNEK: İŞTİP BELEDİYESİ 1903 YILI
BÜTÇESİ .....................................................................................................................................................217
Ahmet Caner ÇATAL
COVID-19 PANDEMİ KRİZİNİN TÜKETİCİ DAVRANIŞLARINA ETKİSİ ........................................229
THE EFFECT OF THE COVID-19 PANDEMIC CRISIS ON CONSUMER BEHAVIORS
Nihal BOZKUŞ
KAMU MALİ YÖNETİMİNDE BÜTÇENİN DENETİMİ SEÇİLMİŞ ÜLKE SAYIŞTAYLARININ KAR-
ŞILAŞTIRMALI ANALİZİ .......................................................................................................................239
AUDIT OF THE BUDGET IN PUBLIC FINANCIAL MANAGEMENT COMPARATIVE ANALYSIS OF
SELECTED COUNTRY SAIS
Serpil Ağcakaya & Hidayet Şal & Oğuz Gülcan & Onur Ergenay
İKİNCİ DÜNYA SAVAŞI YILLARINDA ULUSAL BASINDA TİFÜS: CUMHURİYET GAZETESİ ÖR-
NEĞİ .............................................................................................................................................................257
TYPHUS IN THE NATIONAL PRESS IN THE YEARS OF THE WORLD WAR II: CUMHURIYET
NEWSPAPER EXAMPLE
Ümmügülsüm Candeğer
İNSANSIZ HAVA ARAÇLARI KULLANILARAK SAYISAL YÜKSEKLİK MODELİ, ORTOFOTO HA-
RİTA VE ÜÇ BOYUTLU MODELLEME ÜRETİMİ: OSMANİYE KORKUT ATA ÜNİVERSİTE-
Sİ KARACAOĞLAN KAMPÜSÜ ÖRNEĞİ .........................................................................................275
Ahmet Ertuğrul ARIK & Reha PAŞAOĞLU
KAFES KUŞLARINDA SOLUNUM SİSTEMİ HASTALIKLARINDA ANTİBAKTERİYEL İLAÇ KUL-
LANIMI ........................................................................................................................................................281
ANTIBACTERIAL DRUG USE IN RESPIRATORY DISEASES OF CAGE BIRDS
Ali Bilgili & Yılmaz Tüfekçi
THE IMPACT OF INTELLECTUAL CAPITAL TOWARDS COOPERATIVE PERFORMANCE .....287
NUR ANIS NORDIN & ASSOC. PROF. DR. NOMAHAZA MAHADI

EVDE SAĞLIK HİZMETLERİNDE HASTA GÜVENLİĞİ ......................................................................303
PATIENT SAFETY IN HOME HEALTH SERVICES
Şeyma Nur Hepokur & Naile Bilgili
TÜRKİYE, ALMANYA, ABD VE İNGİLTERE LOJİSTİK PERFORMANS ENDEKSİ KARŞILAŞ-
TIRMASI..................................................................................................................................................313
TURKEY, GERMANY, UNİTED STATES AND ENGLAND LOGİSTİCS PERFORMANCE INDEX
COMPARİSON
Mehmet İnce & Şule Sipahi
STUDENTS’ ATTITUDE TOWARDS ONLINE LEARNING IN SULTAN IDRIS SHAH POLYTECH-
NIC ............................................................................................................................................................329
Aıshah Humaıra bıntı Abdullah & Dıana Lee Phooı Yan & Zuraımı bın Mohd Zuber
İNSAN GENOM PROJESİNİN GETİRDİKLERİ VE OLASI RİSKLERİ .............................................341
IMPLICATIONS AND POSSIBLE RISKS OF THE HUMAN GENOME PROJECT
Nilay Dursun & Ufuk Karadavut
A REVIEW OF WALKING AND CYCLING AS A METHOD OF SUSTAINABLE TRANSPORTA-
TION .........................................................................................................................................................351
Zanarıah Kasım & Mohd Faıruz Shahıdan
FRAMEWORK AND STRATEGIES SUPPORTING IR 4.0 FOR SUSTAINABLE MANUFACTU-
RING: A WAY FORWARD ..................................................................................................................361
Md Razıff Zaınal Abıdın & Muhamad Zamerı Mat Saman & Nor Hasrul Akhmal
Ngadıman
A PROTOTYPE OF WIND, SOLAR AND HYDRO ENERGY GENERATOR FOR EDUCATION
PURPOSES .............................................................................................................................................369
Choong Chee Guan & Nadzrı Che Kamıs & Saw Chun Lın & Robert @ Kerk Swee Tıan
BRAIN-BASED LEARNING PROGRAM: A PEDAGOGICAL NEE ..................................................... 379
Ms. Drashti PADALIA
ATTITUDES OF ESL STUDENTS TOWARD VIRTUAL LEARNING IN POLYTECHNIC MER-
SING, JOHOR (PMJ) ............................................................................................................................387
Yokeswarı d/o Komara Sıngam & Devıka d/o Muthusamy Naıdoo & Suresh Kumar
s/o Chellapan
PROMOTING GREEN FINANCE FOR SUSTAINABLE DEVELOPMENT IN BANGLADESH . . 395
Mohammad Abul Kalam Azad & Md Amınul Islam
THE CHALLENGES OF ONLINE LEARNING ON THE WRITTEN ASSESSMENTS OF ESL STU-
DENTS OF POLYTECHNIC MERSING, JOHOR (PMJ) .............................................................414
Devıka d/o Muthusamy Naıdoo & Yokeswarı d/o Komara Sıngam
DIŞ TİCARETİN VE DÖVİZ KURU HAREKETLİLİĞİNİN REKABET ÜZERİNDEKİ ETKİSİ .....................
423
THE IMPACT OF FOREIGN TRADE and EXCHANGE RATE MOBILITY ON COMPETITION
Güngör PABUŞÇU & Ozan BAHAR
HAYAL EKONOMİSİNE DÖNÜŞÜM ...........................................................................................................433
TRANSFORMATION INTO IMAGINE ECONOMY
Cemile Alp & Ozan Bahar
NARENCİYE ÜRETİMİNİN BÖLGE EKONOMİSİNE KATKISI: DÖRTYOL İLÇESİ ÖRNEĞİ ...........447
CONTRIBUTION OF CITRUS PRODUCTION TO THE REGIONAL ECONOMY: THE CASE OF
DORTYOL DISTRICT
Bahattin GÖZÜBENLİ & Nazif ÇALIŞ

SAHNEYE ÇIKMAK NE KADAR ETKİLİ? GİRİŞİMCİ SOHBETLERİNİN YANSIMASI ÜZERİ-
NE BİR ARAŞTIRMA .......................................................................................................................461
HOW EFFECTIVE IS TAKING THE STAGE? REFLECTION OF ENTREPRENEUR CHATCHES A
RESEARCH ON
Berna Turak Kaplan & Mehmet Kaplan
SEÇMENLERİN SİYASAL UNSURLARDA DEĞİŞİM BEKLENTİLERİNİN ÖLÇÜMÜNE İLİŞ-
KİN BİR ÖLÇEK GELİŞTİRME ÇALIŞMASI .............................................................................467
A SCALE-UP EFFORT TO MEASURE VOTERS’ EXPECTATIONS OF CHANGE IN POLITICAL
ELEMENTS
Dr. Kürşad ÖZKAYNAR
ÇALIŞANLARIN BEŞ FAKTÖR KİŞİLİK ÖZELLİKLERİNİN RUHSAL LİDERLİK DAVRANIŞI-
NA ETKİSİ ...........................................................................................................................................481
THE EFFECT OF EMPLOYEES’ FIVE FACTOR PERSONALITY CHARACTERISTICS ON SPIRI-
TUAL LEADERSHIP BEHAVIOR
Sinem SÖNMEZ
ÇALIŞMA YAŞAMINDA MUTLULUK VE İŞİN ANLAMLILIĞI İLE İLİŞKİSİ .............................485
HAPPINESS IN WORK LIFE AND ITS RELATIONSHIP WITH THE MEANING OF JOB
Özgür ÇARK
DÖNÜŞÜMCÜ LİDERLİĞİN ÖNCÜLLERİ VE ARDILLARI: TÜRKİYE ÖRNEKLEMİ ............501
ANTECEDENTS AND OUTCOMES OF TRANSFORMATIONAL LEADERSHIP: THE SAMPLE OF
TURKEY
Özgür ÇARK
SOLVİNG INTRINSIC DILEMMAS IN CYBERSECURITY POLICYMAKING WITH THE PACE
MODEL: PRINCIPLES AND APPLICATIONS ..........................................................................517
Elif Sercen Nurcan

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PROMOTING GREEN FINANCE FOR SUSTAINABLE
DEVELOPMENT IN BANGLADESH
Mohammad Abul Kalam Azad66
Md Aminul Islam67
Abstract
Although green finance is still a relatively new concept in Bangladesh, it has attracted much
interest in the global financial sector. Policymakers and scholars have recently concentrated on green
finance in response to growing worldwide concern about environmental protection, climate change,
and sustainable development. There is no alternative way to protect the world except sustainable
development. Finance is the engine of the development of infrastructure projects, including energy
projects. Sustainable finance is needed for sustainable development and the emerging concept of
"green finance" is an integral part of it. By yielding environmental benefits, green financing is critical
for ensuring equitable, resilient, and greener economic growth. Bangladesh is gradually strengthening
its funding through green financing in order to reduce the consequences of climate change and protect
the environment by private and public sector involvement. Additionally, the study illustrates the extent
to which green financing is being adopted by banks and non-bank financial institutions in the country
between 2017 and 2021.Besides, the current study focuses on the various green financing
products/initiatives undertaken by public and private sector organizations, banks, and non-banking
financial institutions (NBFIs) in Bangladesh. It also examines the current state of green finance in
Bangladesh, as well as the major obstacles that it faces, and makes recommendations for how to
address those challenges. The study's findings indicate that the banking sector, in collaboration with
NBFIs, is focusing more on green finance by offering different green products. The paper highlights
significant issues in the area of green finance in Bangladesh and also makes recommendations for
overcoming those obstacles. The study is descriptive in nature and based on secondary data gathered
from various Banks and Non-Banking Financial Institutions' reports released by the Central Bank of
Bangladesh, as well as other publicly available reports from public and private sector financial
institutions and banks in Bangladesh. Additionally, quarterly reports on green banking in Bangladesh
were evaluated, as were the websites of commercial banks and non-bank financial institutions, as well
as various organizations such as the World Bank and UNEP, as well as published articles in various
journals and prominent newspapers. The objective of this article is to raise awareness of private
investors' role in sustainability.
Keyword: Green Financing, Green Banking, Sustainable Finance, Bangladesh Bank (BB) Guidelines,
Green Bond.
66 The author is a Ph.D. Student at Faculty of Applied & Human Sciences, University Malaysia Perlis,
Malaysia. Corresponding author can be reach at : abulkalam@stduentmail.unimap.edu.my or
azadkalam@nub.ac.bd. Orchid ID: 0000-0002-1429-0489.
67 The author is a Professor at Faculty of Applied & Human Sciences, University Malaysia Perlis, Malaysia. He
can be reach at : amin@unimap.edu.my.

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III. International Academician Studies Congress 2022 - CHANGE & ADAPTATION
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1. INTRODUCTION
The banking sector is one of the major sources of financing industrial projects such as steel,
paper, cement, chemicals, fertilizers, power, textiles, etc., which cause maximum carbon emission.
Therefore, the banking sector can play an intermediary role between economic & social development
and environmental protection, for promoting environmentally sustainable and socially responsible
investment. Policymakers and scholars have proposed a wide range of remedies to environmental
challenges, guided by the concept of sustainable development, including cleaner production, resource
recycling, a climate fund, an environmental pollution tax, and green financing. The financial sector
will have to be a key component of this green transformation. Sustainable investment and banking are
important parts of green finance. Investment and lending decisions are made based on environmental
screening and risk assessment to meet sustainability standards. Insurance services that cover
environmental and climate risk are also important parts of green finance. According to the
International Finance Corporation, the definition of green finance, a financial innovation product
designed to achieve a win-win situation between economic development and environmental quality
improvement, is the financing of ventures that generate environmental benefits. Green finance is
defined as comprising “all forms of investment or lending that consider environmental effect and
enhance environmental sustainability” (Volz et al. 2015: 2). This report reflects a review of banks and
NBFIs efforts concerning People, Planet and Profit. Green banking initiatives of Bangladesh Bank
(BB) has broadly categorized into the different aspects such as effective policy initiatives, stricter
monitoring of green banking activities of banks and NBFIs, refinance support from BB in diverse
green product or initiatives and BB's own initiatives for environmental management. Investment by
scheduled banks and FIs in any impact fund which is registered under the BSEC (Alternative
Investment) Rules, 2015 and formed for environment friendly sectors having scopes of resource and
energy efficiency, renewable energy, waste management and treatment, climate friendly
transportation, women and child right protection etc. will be considered as green finance (BB, SFD
Circular No. 01). The study illustrates the extent to which green financing is being adopted by banks
and non-bank financial institutions in the country between 2017 and 2021.Besides, the current study
focuses on the various green financing products/initiatives undertaken by public and private sector
organizations, banks, and non-banking financial institutions (NBFIs) in Bangladesh. It also examines
the current state of green finance in Bangladesh, as well as the major obstacles that it faces, and
makes recommendations for how to address those challenges. The study's findings indicate that the
banking sector, in collaboration with NBFIs, is focusing more on green finance by offering different
green products. The paper highlights significant issues in the area of green finance in Bangladesh and
also makes recommendations for overcoming those obstacles. This is how the paper is organized. The
second section examines key literature and conversations on the emergence of green finance, the role
of the financial sector in green growth, and the role of regulators in encouraging green financing. The
methodologies and materials employed in this research are then discussed in Section 3. Green
financing initiatives for sustainable development in Bangladesh are reviewed and analyzed in Section
4. Green Financing Challenges in Bangladesh is discussed in Section 5. The research comes to an end
in Section 6.
2. LITERATURE REVIEW
Sustainable economic growth, green banking, and green finance are becoming increasingly
popular among academics, researchers, and practitioners. The financial sector, on the other hand, is
regarded as an essential component of the economy, serving as a possible link between long-term
economic growth and environmental conservation. Global climate change is now one of the world's
greatest threats. The United Nations' sustainable development goals (SDGs) drew attention to growing

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concerns about environmental pollution and natural resource degradation, paving the way for the
introduction of contemporary notions such as sustainable growth. According to the SFD, BB circular
no. 01 in 2019, Investment by scheduled banks and FIs in any impact fund which is registered under
the BSEC (Alternative Investment) Rules, 2015 and formed for environment friendly sectors/purposes
having scopes of resource and energy efficiency, renewable energy, waste management and treatment,
climate friendly transportation, women and child right protection etc. will be considered as green
finance. (SFD circular no.01, BB, 2019). Although the World Bank issued the first green bond in
2007, it arrived in Bangladesh much later. On April 7, 2021, the Bangladesh Securities and Exchange
Commission authorized Sajida Foundation, a non-governmental organization, to raise BDT 1 billion
in the capital market through the first-ever issuance of green bonds in the country's history
(BSEC,2021). In addition, On 23 June, 2021, Beximco secured the BSEC approval to launch
its Tk3,000 crore Sukuk bond for a five-year tenure.
Three dimensions of GF, namely social, economic, and environmental, are linked to the ideas
of ESG criteria and SDGs have significant practical implications for banks and financial institutions to
improve their sustainability performance by prioritizing investment in environmentally friendly
projects (1). Green banking is an emerging concept integrating the management of environmental
issues with banking activities aiming to transform the financial sector and develop new sustainable
business models [21]. The concept was first unveiled by a Dutch bank named Triodos Bank, which
was established in 1980 [22]. The bank had formed a “Green Fund” in 1990 to provide support for
environmentally friendly projects and, thus, acted as a precursor for other banks intending to adopt
green bank initiatives [22,23]. However, due to increasing interest in the topic and external pressure
on banks to consider sustainable practices [24], this has become a buzzword in today’s banking sector
[20]. As a response to negative effects of economic development on the environment, as well as at the
global financial crisis, the international community seeks solutions for sustaining a sustainable
economy and society [25]. In this context, the concepts of “green economy”, “green growth”, and
“low-carbon economy” evolved [26]. United Nations Environment Programme (UNEP) defines the
green economy as “the process of reconfiguring businesses and infrastructure to deliver better returns
on natural, human and economic capital investments, while at the same time reducing greenhouse gas
emissions, extracting and using less natural resources, creating less waste and reducing social
disparities” [27] (p. 5). Green growth is a more focused concept: growth created through investment
in the environment [28]. Consequently, green financing/green banking has seen significant progress in
recent times because banks as financier has a huge influence on providing funding for the projects
undertaken by industries, and thereby green banking can play Sustainability 2021, 13, 1904 3 of 21 a
significant role in the creation of growth through investment in the environment and ensuring
responsible behavior of other businesses too [4,29,30]. There is not yet a universally accepted
definition of green banking [31]; however, a common thread in the literature is that green banking has
a dominant focus on environmental sustainability. Some researchers suggest that green banking is the
normal process of banking where all the activities are controlled by the same authorities yet putting
extra care on environmental sustainability [32–35]. Lalon [20] defines green banking as any form of
banking that generates environmental benefits. Bhardwaj and Maholtra [36] stated that green banking
is an effort by the banks to make the industries grow green and, in the process, restore the natural
environment. According to Masukujjaman and Aktar [17], green banking refers to eco-friendly or
environment-friendly banking systems to stop environmental degradation in order to make this planet
more habitable. Tara et al. [37] indicated that green banking requires prioritizing financing to the
sectors that promote various environmental protection activities. As a part of green banking
initiatives, the banks and non-bank financial institutions adopt environment-friendly financing
mechanism as well as green transformation of internal operations [38,39]. The process restores the

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natural environment with a view to ensure green safety and sustainable ecological balances [36].
Chowdhury and Dey [40] referred to GB as the operation of banking activities while giving special
attention to social, ecological, and environmental factors with the aim of the conservation of nature
and natural resources. However, the ambiguity as to what constitutes green banking activities and
products represent an obstacle for the classification of green assets as well as for the identification of
further opportunities for green investments [41]. Banking institutions are the primary source of
finance for many industrial projects such as steel, paper, cement, chemicals, fertilizers, power,
textiles, etc., with potentially significant adverse social or environmental impacts [53]. Therefore, as
financiers they have huge influence on the projects undertaken by industries, and thereby green
banking can play a significant role in ensuring responsible behavior of other businesses too [4,29,30].
Accordingly, green finance is defined as comprising “all forms of investment or lending that consider
environmental effect and enhance environmental sustainability” [54] (p. 2). Important aspects of
green finance are sustainable investments and banking, where investment and lending decisions are
taken based on environmental screening and risk assessment to meet sustainability standards, as well
as insurance services that cover environmental and climate risk [55,56]. Further literatures on green
financing suggest [57–60], cited in Bai, 2011, that green finance, within the banking sector, can be
presented in a wide spectrum of market-based lending or investing businesses, involving retail
banking, project financing, asset management, types of loans, and investment finance that are all
responsible for the environment and society.
Central banks are among the most important stakeholders in the banking business as they have
the necessary leverage to coerce/impose various influences on commercial banks and other financial
institutions in order to conform to certain prescribed rules and regulations to carry out their business
in an environmentally friendly manner [68]. Through their regulatory oversight over money, credit,
and the financial system, central banks are in a powerful position to support the development of green
approaches and enforce an adequate pricing of environmental and carbon risk by financial institutions
[68]. Hence, to tackle climate-related financial issues and potential disruptions and to promote green
and sustainable finance, a growing number of central banks and regulators around the world are
becoming aware of their role and addressing climate change and environment risks in their mandate
[68,69]. Globally, many central banks have already adopted sustainability policies to regulate or guide
the activities of banks [42] or have started to incorporate climate risk into macro-prudential
frameworks [70]. These regulations also seek to address in-house resource consumption for positive
contributions towards the transition of green growth. Nevertheless, central banks and supervisors
across different jurisdictions operate within different mandates and legal frameworks [71] depending
on the country and related institutional frameworks [72]. It is evident that emerging economies are the
most engaged in pursuing green policies in the banking sector primarily because of regulatory
requirements [65,73] while the green finance activities in developed countries are mostly voluntary
and driven by the decision-makers’ awareness of sustainable development and corporate social
responsibility [74]. Besides financial regulation, industry leadership plays a crucial role in
implementing green/sustainable banking approaches. A growing number of financial institutions
around the world have voluntarily either created their own networks or initiatives or joined platforms
established by international development agencies such as the International Finance Corporation
(IFC) and UNEP [75]. A group of central banks and supervisors launched the Networking for
Greening the Financial System in 2017 to contribute to the analysis and management of climate and
environment-related risks in the financial sector and to mobilize mainstream finance to support the
transition toward a sustainable economy [76]. The Task Force on Climate-related Financial Disclosure
was established by the Financial Stability Board, which is an international body that monitors and
makes recommendations about the global financial system, with an aim to develop voluntary,

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consistent climate-related financial risk disclosures that would be helpful to investors, Sustainability
2021, 13, 1904 5 of 21 lenders, insurance companies, and asset managers in identifying and managing
financial risks [77]. Moreover, the G20 Sustainable Finance Study Group, which was formerly known
as G20 Green Finance Study Group, was created to identify barriers to green finance and improve the
financial system to mobilize private capital for green and sustainable investment [78]. Global Alliance
for Banking on Values (GABV) is an independent network of banks and banking cooperatives with a
shared mission to use finance to deliver sustainable economic, social, and environmental
development. Among other initiatives, Equator Principles (EP), the Impact Investing and Reporting
Standards (IRIS), the Global Reporting Initiative (GRI) for subgroups of financial products and
services, project finance, and institutional investment are worth mentioning [79].
Objectives of the study:
a) To comprehend the various green finance initiatives undertaken by banks and
non-bank financial institutions (NBFIs) in Bangladesh.
b) To look into the most recent trends in green finance in Bangladesh.
c) To investigate a variety of issues concerning green finance in Bangladesh.
3. METHODOLOGY OF THE STUDY
In this study, secondary data was gathered from various Banks and Non-Banking Financial
Institutions' reports released by the Central Bank of Bangladesh, as well as from other publicly
available reports from public and private sector financial institutions and banks in Bangladesh. In
addition, quarterly reports on green banking in Bangladesh, websites of commercial banks and non-
bank financial institutions and different organizations such as, World Bank, UNEP, published articles
in different journals and renowned newspapers were also reviewed to gain insights. The research
follows a qualitative approach and the research design involves organizing, collating, and assessing
these data samples for valid research conclusions. The scope of the study is limited to banks and
NBFIs operating in Bangladesh and excludes other financial institutions such as insurance companies,
investment companies, and capital market intermediaries like brokerage houses.
4. FINDINGS & ANALYSIS
4.1. Green Financing Initiatives For Sustainable Development In Bangladesh
Recently Bangladesh have taken some pivotal steps to fostering sustainable development in
Bangladesh to achieve the national determined contributions goals. Table 1 represents the policy
initiatives for sustainable development. From January 2020 onwards minimum target of green finance
was set at 5% of the total funded term loan disbursement for all banks and FIs (GBCSRD Circular No.
04/2020). In addition, Bangladesh bank formulate a climate risk fund, sustainable finance policy,
sustainability rating methodology, and yearly target & achievement' of green finance and sustainable
finance for Banks & FIs has been fixed. Consequently, the parts that follow will study and analyze
data from annual reports from 2017 through 2021 to give evidence for these four categories.

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4.1.1. Policy Initiatives For Sustainable Development
Table 1: Policy Initiatives for sustainable development
Year
Policy/ Guidelines
Circular
2011

Environmental Risk Management (ERM) Guidelines for
Banks and Financial Institutions has been issued.
 Green Banking Policy Guidelines for Banks has been issued.
BRPD Circular
No.01/2011&02/2
0 11
2013

Policy Guidelines for Green Banking was also issued
for the Financial Institutions (FIs) and for
thebanksscheduledin2013.
GBCSRD
Circular No.
04/2013 &
Letter No.05/2013
2014  From January 2016 onwards minimum target of direct
green finance was set at 5% of the total funded loan
disbursement/investment for all banks and FIs.
GBCSRD
Circular No.
04/2014
2015

Banks and FIs were instructed to formal “Climate Risk
Fund” having allocation at least10% of their Corporate
Social Responsibility budget.
GBCSRD
Circular No.
04/2015
2016

Banks & FIs have been instructed to set up Solid Waste
Management System, Rainwater Harvesting and Solar
Power Panel in their newly constructed or arranged
building
SFD Circular
No. 01/2016 &
03/2016
infrastructure.
 All the banks & FIs must ensure the establishment and
activeness of Effluent Treatment Plant (ETP) during
financing to all possible clients.
2016  All banks and FIs to establish Sustainable Finance
Unit and Sustainable Finance Committee by
abolishing both Green Banking and CSR units.
SFD Circular
No. 02/2016
2017

Guidelines on Environmental and Social Risk
Management (ESRM) for Banks and Financial
Institutions along with an Excel-based Risk Rating
Model have been issued.
 A comprehensive list of product/initiatives of Green
Finance for banks and FIs has been circulated
SFD Circular
No. 02/2017 &
04/2017
2018

A new uniform reporting format of Quarterly Review
Report on Green Banking Activities has been circulated
for Banks & FIs to monitor green banking policy & other
regulations and to ensure the quality & uniformity of
data provided by Banks & FIs.
SFD Circular
No. 01/2018

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2019

Investment by scheduled banks & FIs in any impact fund
which is registered under BSEC (Alternative Investment)
Rules, 2015
and formed for environment friendly
sectors/purposes (resource & energy efficiency, renewable
Energy, waste management and treatment, women &
child right protection etc.) will be considered as green
finance.
SFD Circular
No. 01/2019
2020

From September, 2020 onwards minimum target of green
finance was set at 5% of the total funded term loan
disbursement/investment for all banks and FIs
SFD Circular
Letter No.
05/2020
2020

Sustainable Finance Policy for Banks & FIs was issued and
new reporting format of Quarterly Report on Sustainable
Finance has been introduced.
 Sustainability Rating Methodology for Banks & FIs
was
issued.
SFD Circular
No. 05/2020 &
06/2020
2021  Yearly 'Target & Achievement' of Green Finance and
Sustainable Finance for Banks & FIs has been fixed.
SFD Circular
No. 01/2021
2021

Target Fixation of Green Finance & Sustainable Finance.
 About Sustainability Rating Methodology for Banks & FIs
SFD Circular
Letter No.
03/2021 & 05/2021
Source: BB, SFD, 2022
4.1.2. Green Products Introduces by Bangladesh Bank
Initially, six green products or activities were designated to qualify for the scheme's refinance
facility extension. Later, in response to market demand and expert opinions from the technical advisory
committee, as well as periodic consultations with experts and stakeholders, Bangladesh Bank
increased the number of eligible green products/initiatives for refinancing under the scheme from six
to fifty-five (Table 2) until FY21.
Table 2: List of Green Products under “Refinance Scheme for Green Products/ Initiatives”
Sl
No
.
Green Products/ initiatives
Sl
No
.
Green Products/ initiatives
1
Solar Home System
29
Combination of Biological and Chemical ETP
2
Solar Pico Grid
30
Conversion of Chemical ETP into
Combination of Biological and Chemical ETP
3
Solar Nano Grid
31
Central ETP
4
Solar Micro Grid
32
Waste Water Treatment Plant
5 Solar Mini Grid 33 Sewage Water Treatment Plant
6
Solar Park
34
Methane Recovery and Power Production
from Municipal Waste Plant

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7
Net Metering Rooftop Solar
System
35
Compost Production from Municipal Waste
Plant
8
Solar Irrigation Pumping
System
36
Hazardous Waste Management Unit/Plant
9
Solar Pump for Drinking
Water
37
Medical Waste Management Unit/Plant
10
Solar Photovoltaic (PV)
Assembly/Manufacturing
Plant
38
E-Waste Management Unit/Plant
11
Solar Cooker
Assembly/Manufacturing
Plant
39
Sludge Management Unit/Plant
12
Solar Water Heater
Assembly/Manufacturing
Plant
40
PET Bottle Recyling Plant
13
Solar Air Heater & Cooling
System
Assembly/Manufacturing
Plant
41
Plastic Waste (PVC, PP, LDPE, HDPE,
PS) Recycling Plant
14
Solar Powered Cold Storage
42
Paper Recycling Plant
15 Small size biogas plants -
1.2, 1.6, 2.0, 2.4, 3.2 and 4.8
cubic
meter gas production per day
43 Recyclable Bag Manufacturing Plant
16
Medium size biogas plant
varies
between 6.0 to 25 cubic
meter gas productions per
day
44
Recyclable Poly Propylene Thread and
Bag Manufacturing Plant
17
Large size biogas plant is 26
cubic meter gas production
per day to 200 cubic meter
gas
production per day and above
45
Battery (Solar/Led Acid/Lithium Ion)
Recycling Plant
18
Integrated Cow Rearing and
Setting up of Bio-gas Plant
46
Compressed Block-Brick
19
Wind Power Plant
47
Foam Concrete Brick
20
Hydro Power Plant (Pico,
Micro, Mini)
48
Environment Friendly/Brick Kiln
Efficiency Improvement Project (Tunnel
Kiln and HHK)
21
Installation of Energy
Auditor Certified
49
Establishment of Certified Green Industry

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machineries including
boiler
22
Auto Sensor Power Switch
Assembly Plant
50
Establishment of Certified Green Building
23 Energy Efficient Cook
Stove Assembly Plant
51 Establishment/Installation 'Green Featuring'
in the Building/Industries
24
Led Bulb/Tube
52
Safety and work environment of factory
Manufacturing/Assembly Plant
25
Energy Efficient Lime Kiln
53
Production of Vermicompost
26
Improved Rice Parboiling
System
54
Production of Palm oil
27 Pyrolysis Oil/Bio-crude Oil/Bio
Fuel Manufacturing Plant
55 Production organic fertilizer from slurry
28
Biological ETP
Source: SFD, BB, 2022
4.1.3. Current status and Green Financing Practices by Banks and NBFIs in Bangladesh
Currently, the Bangladesh Bank (BB) regulates and supervises 61 scheduled banks, 34 NBFIs,
and 5 non-scheduled banks (Bangladesh Bank, 2022). This section describes the situation of green
finance in Bangladesh during the past several years and displays the green financing activities of
banks and NBFIs compiled from their annual reports from 2017 to 2021. While table 3 below
shows year on year disbursement of green finance during the last five years by state-owned banks
(SCBs), development financial institutions (DFIs), foreign-owned banks (FCBs), private commercial
banks (PCBs), and NBFIs in Bangladesh from 2017 to 2021.
Table 3: Green financing by banks & NBFIs in Bangladesh from 2017 to 2021
Types of
banks/NBFIs
2017
2018
2019
2020
2021
SCBs(06)
7220.60
1815.20
1219.44
1908.91
3372.68
SDBs(03)
18.90
45.40
3.56
9.83
22.63
PCBs(43)
425,944.50
65,904.30
78,316.88
69,668.75
62,700.72
FCBs(09) 101,524.90 192.60 19213.16 34332.69 2751.73
Banks Total
534,708.90
67,957.50
98,753.09
105,920.18
68,847.76
NBFIs(34)
13907.70
3389.60
6499.87
5295.20
4548.03
Grand Total
548616.66
71347.10
105252.91
111215.38
73395.79

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Chart 1 : Trend of Green financing by banks & NBFIs in
Bangladesh from 2017 to 2021
1000000
500000
0
2017 2018
2019
Duration
2020
2021
Table 4 represents category-wise direct green finance in last five years. Chart 1 presents Trend
of Green financing by banks & NBFIs in Bangladesh from 2017 to 2021 where Chart 2 indicates the
category-wise green finance by banks & NBFIs in Bangladesh from 2017 to 2021. The findings of the
study revealed that the total amount of direct disbursement of green finance by banks and NBFIs in
Bangladesh during the last five financial year (2017-2021) were 909,828.37 million Bangladeshi Taka
(BDT) (see Table 3). The highest disbursement was in 2017 and lowest was in 2018 among the five
financial year. The amount were 548616.66 and 71347.10 million respectively. Comparing all
financial institutions in green financing projects PCBs was the highest and SDBs was the lowest
contributors among all. However, in the case of the NBFIs in 2021, it has been decreased by BDT
747.17 million, which is 14.11% lower than the previous year. In 2021, however, a rather modest
expansion is anticipated. It is possible that the pandemic impacted investment prospects in the country
as a whole. It is also obvious that private commercial banks have contributed around 80% of the total
green finance and have played a vital role in greening the nation's economy.
Table 4: Category -Wise of Green Financing
Categor
y- wise
Green
Financin
g
Renewa
ble
Energy
Energy
Efficienc
y
Alternativ
e
Energy
Waste
Managem
ent
(Liquid &
Solid)
Recyclab
le Goods
(Recyclin
g &
Manufac
turing)
Brick
Producti
on
(Environm
ent
Friendly)
Green
Establishme
nts
(Environm
ent
Friendly)
Others
(Green
Agricultu
re,
CMSME
& SRF)
2017
4443.8
3398.3
132.7
9084.5
6276.4
193.6
1577.8
1626.5
2018
3,355.6
4,236.9
9.0
35,356.6
3,867.2
10,989.2
11,270.0
2,262.6
2019
3,442.43
4,031.59
83.98
27,359.40
11,238.68
18,585.92
34,303.21
6,207.70
2020
3,546.19
9,545.09
16.08
10,062.72
8,866.69
9,198.28
66,740.18
3,240.16
2021
4,339.56
13,795.70
43.84
5395.73
5,536.03
2,931.03
37,193.66
4159.98
Total
19127.58
35007.6
285.6
87,258.95
29,508.60
41,704.43
15,1084.85
15,870.44
SCBs(06)
SDBs(03)
PCBs(43)
FCBs(09) Banks Total NBFIs(34)
in million BDT

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But the NBFIs are not in the same situation. Even though NBFIs have grown a lot in the past
few years, the growth of green finance from year to year has been uneven and slow. Bangladesh now
has 34 non-bank financial institutions (NBFIs) and 61 scheduled banks. NBFIs have a narrower
business line than commercial banks, as their investments are largely centered in the industrial sector.
The majority of NBFIs conduct merchant banking through independent subsidiaries, much like banks.
These could be the causes for the NBFIs' poorer green performance as compared to banks. Charts 2
shows that the category-wise green financing from 2017 to 2021 where it is evident that the majority
of the green finance was mobilized in the green and environment friendly establishments of green
finance followed by waste management, brick production and energy efficiency.
4.2. Recent Development of Green Bonds in Bangladesh
4.2.1. Guidelines and Standards For Green Bonds
At the international, regional, and national levels, a diverse set of norms and standards for
green bonds has been produced. Proceeds from issue should be held in a separate subaccount or
properly tracked until spent, and environmental impacts should be transparently disclosed. The CBI
standard requires that proceeds from green bonds be transferred to investments within 24 months after
their issuance, whereas the other frameworks make no such requirement. All frameworks advocate for
environmental reporting, ideally quantitative, on the effects of projects financed with bond funds. At
their most fundamental level, guidelines differ in that they either establish a comprehensive set of rules
and criteria specifying the exact standards that green projects must meet, or they describe a process for
disclosing how bond proceeds will be spent while allowing issuers to define their own project
standards. In general, green bond guidelines typically cover:

use of proceeds – the issuer should declare the eligible green product categories
upfront, providing clear environmental benefits;

process for project evaluation and selection – the issuer should outline the
process of selection and work to establish impact objectives;

management of proceeds – funds should be segregated or otherwise tracked;

reporting – issuers should report regularly on projects and where feasible, on the
Chart 2:Category-wise Green Finance by banks & NBFIs in Bangladesh
from 2017 to 2021
2017 2018 2019 2020 2021 Total
200000
150000
100000
DIFFERENT CATEGORY
IN MILLION BDT
Renewable Energy
Energy Efficiency
Alternative Energy
Waste Management
Recyclable Goods
Brick Production
Green/ Environment
Friendly Establishments
Others (Green
Agriculture, CMSME
& SRF)

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impact of the specific investment.
Bangladesh, on the other hand, is attempting to establish a bond market with more endurance
and compatibility. In this trial, Green Bonds will be a critical tool. Green Bonds are used to finance
environmentally beneficial projects that aim to reduce carbon emissions and industrial pollutants in
general. Due to this distinguishing characteristic, green bonds may contribute to the revitalization of
Bangladesh's currently sluggish bond market.
4.2.2. Green Bond
Green bonds are nearly identical to conventional bonds, except that the funds obtained from
investors are used to finance projects that have a good impact on the environment. For instance,
renewable energy, green buildings, and eco-friendly clothing. On April 7, 2021, the Bangladesh
Securities and Exchange Commission authorized Sajida Foundation, a non-governmental organization,
to raise BDT 1 billion in the capital market through the first-ever issuance of green bonds in the
country's history. The non-profit organization intends to use the proceeds from the Green Zero-
Coupon Bond to expand the reach of its microfinance program and to assure environmental
development. These bonds are available for purchase by public financial institutions, mutual funds,
insurance companies, publicly traded banks, cooperative banks, regional rural banks, organizations,
trusts, and autonomous businesses.
4.2.2.1. Green Sukuk Bond
Beximco first issued a Tk3,000 crore Sukuk bond with a five-year maturity, intending to use
the proceeds to expand its textile operation and implement two solar power projects under its power
division. The Investment Corporation of Bangladesh served as trustee for the Sukuk, which was co-
managed by City Bank Capital Resources Ltd. and Agrani Equity and Investment Ltd. The Sukuk's
base rate was set at 9%, implying that investors will receive a 9% guaranteed yearly return. Over the
course of the five-year term, investors can convert their Sukuk into shares of Beximco. They can
convert only 20% of the total in a single year.
Challenges and recommendation of Green Financing in Bangladesh:

Despite the existence of green banking policy guidelines, banks and financial institutions'
inability to manage green projects has resulted in a slow growth of green financing
promotion.

Bangladesh's green bond market is still in its early stages, and it has struggled to attract
enough investors. Investors choose to put their money into highly rated bonds or low-risk
investments. To make these bonds appealing to investors, the bond market requires an
appropriate framework.

Investment in green initiatives becomes too expensive due to the high cost of borrowed
funding. High debt costs are related to reasons such as high interest rates, short
maturity periods, and the lack of non-recourse loans. So, borrowing cost must be reduced
from the other risky investment. Though cost of capital is comparatively lower than
conventional financing.

Current market behaviors, market regulation, and financial incentives are all becoming
major roadblocks to the success of financial instruments. However, different regulatory
framework need to be formed to get the benefits of green finance.

The availability of financial resources is hindered by the presence of a number of hazards
that are associated with green finance. These risks include currency risk, risk related to

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technology, and credit risk. So, professional risk analyst should be employed to assess
the risk management.

In addition to investors' ignorance of innovative financial mechanisms, a lack of investor
awareness is a barrier to green financing. So, investor awareness must be increased.

Funding green projects is hampered by the absence of an efficient framework for
evaluating sustainable ventures, particularly in the early stages of innovation.
5. CONCLUSION
The report reveals that the Bangladeshi financial sector has been at the forefront of green
banking since 2011. It shows that Bangladesh's central bank has played a vital role in greening the
Bangladeshi banking system. There is also a good synergy between green banking legislation and
the government's green growth agenda. The Central bank strengthens the consistency of
governmental policies and activities by using in-house green practices. We argue that central bank
policy and financial supervisory support in emerging nations affect long-term results for sustainable
development and a just transition to a green economy.
Currently, all are concerned about protecting the environment and maintaining ecological
equilibrium. A number of stakeholders, including the general public, the news media, environmental
organizations, corporations, and the government, are required to raise public understanding of
environmental issues. All of these stakeholders have benefited from a company's sustainability
initiatives, which have a wider impact on society and the global environment. Banks and other
financial institutions play a crucial role in protecting the environment by supporting a variety of
eco-friendly projects, including renewable energy, green sector development, and waste
management. Green financing benefits a variety of stakeholders, including bankers, managers,
suppliers, academics, and communities, by assisting them in achieving environmental sustainability
through the implementation of various strategies, such as energy conservation, online banking,
paperless transactions, employee engagement programs, training, etc. In conclusion, green
financing is essential for Bangladesh's long-term, sustainable economic growth and banking sector
development.
More research is needed to assess the success of central bank greening measures in
emerging markets, as well as to look into the variables that make green finance efforts easier to
embrace.

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